Dream Industrial Real Estate Investment Trust

TSX:DIR.UN Stock Report

Market Cap: CA$3.6b

Dream Industrial Real Estate Investment Trust Valuation

Is DIR.UN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DIR.UN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DIR.UN (CA$12.75) is trading below our estimate of fair value (CA$18.49)

Significantly Below Fair Value: DIR.UN is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DIR.UN?

Other financial metrics that can be useful for relative valuation.

DIR.UN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue14.3x
Enterprise Value/EBITDA20.8x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does DIR.UN's PE Ratio compare to its peers?

The above table shows the PE ratio for DIR.UN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.9x
GRT.UN Granite Real Estate Investment Trust
35x39.4%CA$4.8b
NXR.UN Nexus Industrial REIT
3.2x-51.1%CA$703.1m
CRT.UN CT Real Estate Investment Trust
31.5xn/aCA$3.3b
BEI.UN Boardwalk Real Estate Investment Trust
5.7xn/aCA$4.1b
DIR.UN Dream Industrial Real Estate Investment Trust
33.5x43.9%CA$3.6b

Price-To-Earnings vs Peers: DIR.UN is expensive based on its Price-To-Earnings Ratio (33.5x) compared to the peer average (18.9x).


Price to Earnings Ratio vs Industry

How does DIR.UN's PE Ratio compare vs other companies in the Global Industrial REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: DIR.UN is expensive based on its Price-To-Earnings Ratio (33.5x) compared to the Global Industrial REITs industry average (23x).


Price to Earnings Ratio vs Fair Ratio

What is DIR.UN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DIR.UN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33.5x
Fair PE Ratio16.8x

Price-To-Earnings vs Fair Ratio: DIR.UN is expensive based on its Price-To-Earnings Ratio (33.5x) compared to the estimated Fair Price-To-Earnings Ratio (16.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DIR.UN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$12.75
CA$15.98
+25.3%
3.4%CA$17.00CA$15.00n/a11
Mar ’25CA$12.89
CA$16.07
+24.7%
2.8%CA$17.00CA$15.25n/a11
Feb ’25CA$13.74
CA$16.04
+16.8%
2.7%CA$17.00CA$15.50n/a12
Jan ’25CA$13.96
CA$15.96
+14.3%
2.4%CA$17.00CA$15.50n/a12
Dec ’24CA$12.85
CA$15.91
+23.8%
2.9%CA$17.00CA$15.00n/a11
Nov ’24CA$11.99
CA$16.52
+37.8%
4.7%CA$17.75CA$15.00n/a11
Oct ’24CA$12.84
CA$17.08
+33.0%
2.8%CA$18.00CA$16.50n/a12
Sep ’24CA$13.95
CA$17.08
+22.5%
2.8%CA$18.00CA$16.50n/a12
Aug ’24CA$14.20
CA$17.19
+21.0%
3.1%CA$18.00CA$16.50n/a12
Jul ’24CA$14.11
CA$17.31
+22.7%
3.5%CA$18.50CA$16.50n/a12
Jun ’24CA$13.77
CA$17.39
+26.3%
3.3%CA$18.50CA$16.50n/a11
May ’24CA$14.80
CA$16.98
+14.7%
2.7%CA$18.00CA$16.00n/a12
Apr ’24CA$14.70
CA$16.89
+14.9%
2.1%CA$17.50CA$16.00n/a11
Mar ’24CA$14.70
CA$16.89
+14.9%
2.1%CA$17.50CA$16.00CA$12.8911
Feb ’24CA$14.06
CA$15.28
+8.7%
6.1%CA$17.00CA$13.50CA$13.748
Jan ’24CA$11.69
CA$15.08
+29.0%
6.3%CA$17.00CA$13.50CA$13.969
Dec ’23CA$12.16
CA$15.08
+24.0%
6.3%CA$17.00CA$13.50CA$12.859
Nov ’23CA$11.17
CA$15.45
+38.3%
7.2%CA$17.00CA$13.50CA$11.9910
Oct ’23CA$10.73
CA$15.98
+48.9%
5.0%CA$17.00CA$14.25CA$12.8410
Sep ’23CA$11.83
CA$15.98
+35.0%
5.0%CA$17.00CA$14.25CA$13.9510
Aug ’23CA$12.62
CA$16.73
+32.5%
10.2%CA$19.50CA$13.50CA$14.2010
Jul ’23CA$12.08
CA$18.10
+49.8%
6.5%CA$19.50CA$16.00CA$14.1110
Jun ’23CA$14.08
CA$18.55
+31.7%
4.9%CA$19.50CA$16.50CA$13.7710
May ’23CA$14.96
CA$19.43
+29.8%
1.4%CA$20.00CA$19.00CA$14.8010
Apr ’23CA$16.13
CA$19.63
+21.7%
2.6%CA$21.00CA$19.00CA$14.7010
Mar ’23CA$16.30
CA$19.71
+20.9%
3.3%CA$21.00CA$19.00CA$14.707

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.